HomeMy WebLinkAboutThe Goderich Signal-Star, 1985-03-27, Page 22Eveny.frks e.rtd`. idn- . � � tions :720,7253.
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RiSti NEWS
A
. rmers forced to take off -farm jobs
shoutthi't :1* penal zecl, says SFA
Restricted farm losses, agri-bonds and
the taxation of capital gains on farm land
were the topics discussed by the Ontario
-Federation-of-Agriculture (OFA).-in--its-sub-
mission to the federal Standing Committee
on Finance, Trade and Economic Affairs,
presented in Ottawa recently..
These areas are important to farmers,
•, Harry Pelissero, president of the OFA, said.
"We beiiev, it would be remiss of us if we
were to leave you with the impression that
dealing with the three issues outlined in the
. discussion paper would solve `the farm pro -
Piero.' These issues are almost on the
periphery of the situation facing Canadian
farmers today,," he told the committee,
"It is imperative that the government set
long-term policies for the agricultural sec-
tor now. They must encompass all areas, in-
cluding, long- and short-term credit, price
for product, developmental programs, and
research •priorities. One of the critical fac-
tors in the industry now. is the fact that
farmers are often getting insufficient return
to their.labor, their investment and for their
expertise in order to keep the industry
healthy. Over the millennia more than one
nation has vanished into economic oblivion
over the failure to recognize the importance
of its food supplies. Eroding fields and emp-
ty barns should he warning enough,"
caaaawau auau In nub ..auwing a.,a;aurks to the
eon imttee.
In its submission, the OFA noted that
committee members had to analyze three
complex issues in -a short period of time, and
that the background they were provided br
the white paper,' Tax Issues in Agriculture,
was "extremely misleading and does not
serve as an adequate base for consultation."
With respect to restricted farm losses,
governed by Section 31 of the Income Tax
Act, the OFA proposed that it be retained in
order to discourage non-farm investment in
agriculan e, but that it be substantially
revised. The submission suggested that any
proposal dealing with Section 31 should not
encourage farming solely for income tax
savings and that it must recognize the re-
quirements of beginning farmers. Farmers
who must take off -farm jobs should not be
penalized, the OFA said.
The federation suggested that farmers
who file on the accrual reporting method be
allowed to treat farm losses as business
losses, giving them an unlimited write-off.
For those reporting on the cash method, the
OFA recommended that .farm losses be ap-
plied without restriction against other in-
corne until a stated dollar maximum of the
tax has been deferred.
The OFA's policy is total abolition of
capital gains tax, and the federation told the
conucuttee that it takes the Prime Minister
at his word when during the federal election
campaign he stated, "We will abolish the
imposition of capital gains tax on the sale of
farm property for. continued" `agricultural
purposes." The OFA rejects the govern-
ment's suggestion that removal of capital
gains tax be accompanied by limiting or
disallowing the deduction of interest paid to
buy land.
The concept of Agri -bonds was reviewed.
The OFA told the committee, "...they were
envisioned as representing a stable,
reasonably priced ... tool, to provide credit
at a cost more realistically related to the
farmer's ability to pay." The concept has
been discussed at length, but not im-
plemented, and the OFA expressed concern
that this is because of misunderstandings
arising from inappropriate comparisons to
an American bond system.
The OFA proposed a system whereby the
Farm Credit Corporation would raise
capital through Agri -bonds, which would
provide purchasers with a tax credit com-
parable to the dividend tax credit given to
shareholders in taxable Canadian corpora-
tions.
The bonds would be sold only to individual
investors and when introduced, the funds
would be directed first to beginning farmers
and farmers in financial difficulty.
Health and safety was topic at meeting
The work of the Task Force on Health and
Safety in Agriculture was one of the
featured topics at the recent Farm Safety
Association's Annual Conference, held in
;Toronto on March 11, 1985. Dr. Richard
Richards, Chairman of the Task Force, ex-
amining the history and current state of
safety in Ontario agriculture. Dr. Richards
stressed that the Complex nature of
agriculture in the province led to a number
of studies being carried out. Recommenda-
tions by the Task Force will be made in
June.
The one day Conference also, included a
number of other speakers including the
Honourable Lincoln Alexander, Chairman
OL Lee ',eel uci e• ..napensation Board. Mr:
Alexander outlined recent changes in
benefits in the Compensation system as well
as changes in Safety Education at the
Workers' Compensation Board. Dr. Martin
O'Connell, Chairman of the Canadian Cen-
tre for Occupational Health and Safety in
Hamilton, Ontario, gave a presentation on
how the Centre can be of service to farmers
seeking occupational health and safety in-
formation.
A presentation was also made by Marie
Little, President of the Essex Farm Safety
Association, on organizing poster 'competi-
tions in schools to promote safety among
rural youth. Joseph Andrews, Farm Safety -
Consultant, spoke on concerns with farm
machinery on public roadways. He outlined
many of the potential dangers in moving
equipment on highways as well as laws
governing such transport.
Dr. Clayton Switzer, Deputy Minister, On-
tario Ministry of Agriculture and Food, ad-
dressed the delegates at the evening ban-
quet.
Mr. Jim Gibb, an Embro pork producer,
was re-elected Presideiof the Farm Safety
A sociation for 1985. Robert Goulet of
Blenheim was re-elected vice-president,
Renie Long of London, Anton Wytenburg of
Richmond and Allen Diefenbacher of
Floradale, were elected to the Association's
five member Executive Committee.
Farm Credit increases interest to 13'A per cent
Farm Credit Corporation Canada (FCC)
today announced an increase in its interest
rates. Effective today, loans approved
under the Farm Credit Act with a five-year
fixed term carry an interest rate of 131/2 per
cent. This is up from the previous rate of
123/4 per cent which had beep in effect since
January 21. The interest rates have -cone up
in response to the rising costa the,€raids the
Corporation borrows to iendtofarnlers.
The interest rate on Farm Credit Act
loans with a ten-year term is now 133/4 per
cent, up from the previous rate of 13 3/8 per
cent. The rate on loans with a 20 -year term
is 14 per cent compared to the prior rate of
13 5/8 per cent.
The Corporation also announced that the
interest rate for FCC's new Shared Risk
Mortgage loans will be 131/4 per cent when
the program takes effect on April 1. With a
Shared Risk Mortgage, the interest rate is
adjusted annually, but the borrower and
FCC ,share. equally. in any 'interest rate in--,
crease or decrease. Over the six-year term
of the Shared Risk Mortgage, the borrower
is protected by a ceiling of 21/2 per cent on in-
terest rate increases.
For the things you want and need...
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OFFICE HOURS! -
Man. to Thurs.-9:30 a.m. to 5.13 p.m.
Fridays 9:30 a.m. to 6:30 p.m.
Saturday 9:30 a.m. to 12 noon
The interest rate on loans under the Farm
Syndicate Credit Act is 131 per cent, up
from the previous rate of 123/4 per cent.
Cattlemen
hold director's
meeting in B lyth
The Huron Cattlerrieh's Association held
its director's meeting at the .Blyth Inn on
Mar. 11.
Doug Garniss, President of the Fed. of
Agr. was guest speaker.
Glen Coultes' gave a report of the Conven-
tion and the sale to be held at Markham.
Secretary's salary was discussed and she
will receive $6 pr hour retroactive Jan. 1/85.
Proposed activities for 1985 included an
area trip to Colorado in July and beef
barbecue in August and a one -day trip
through the county and Beef Information
night in September.
Delegates to the Convention are to receive
$75 each. Hay and Stanley directors will look
after the barbecue.
President Ross and one other director will
look into a typewriter for the secretary.
Secretary's salary is to be reviewed at the
start of each year.
Ron Benitl and Neil Stapleton are to look
into a day tour to New Liskeard.
Seniors held
St. Patrick's
Day tea
and bake sale
•
Twelve tables were in play at the seniors
weekly euchre Wednesday evening. High
maxi=was Jinn Errington, low Alex Glenn
high lady, Adeline Alibi; low, Jean
Broughton. Birthday greetings were extend-
ed to three Margarets namely, Margaret
Mole, Margaret Errington and Margaret
Young. The birthday. nearest St. Patrick's
Day received a Shamrock plant.
Scott Richardson, son of Gary and Dawn
Richardson, spent a few days with Margaret
Mole during the March break.
Bob andFred Tideswell of Clinton visited
with Bill and Marie Park and Todd on Satur-
day.
On Friday evening Margaret Mole attend-
ed a fourth birthday party for Catherine
eee Wilkins, daughter of Joanne and Bob
Wilkins. Catherine is Margaret's oldest
great-grandchild. On Sunday Margaret was
present for the christening of her youngest
great grandchild, Bryce Benson Hoover, son
of Vicki (Walden) and Brian Hoover at the
Kincardine United Church. A lunch followed
at the Hoover home.
On Sunday all the family num ,ring 21,
were present to help their father, Bit Park
celebrate his birthday.
A very successful St. Patrick' Day tea
and bake sale was held at the Seniors Centre
on Saturday. Winners of the draws were
Judy Sproul, a mohair throw, Lois Haggitt a
ham and Ruby McWhinney, box of Turtles.
Bob and Kathy Eedy and family of
Mississauga and Bob and Pat Ott of Kit-
chener and family spent the weekend with
Irvine Colleen E
Dtingarinandon Senior Citizens are planning a
flea market and bake sale in May.